ABSTRACT This paper studied a continuous-time model of a production maintenance system in which a manufacturing firm produces a single product selling some and stocking the remaining. The problem of adaptive control of a production-maintenance system with unknown deterioration has been presented. Using Liapunov technique, the production rate and updating rule of deterioration rate are derived as non-linear functions of inventory level perturbation. Numerical analysis for the system has been presented for a set of parameter values and demand rate.
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